Budget 2011 gives Britons and their families no hope, say unions

Business and union opinion was predictably split over the measures introduced in the 2011 budget.

Under pressure: Chancellor George Osborne drinks a glass of water as he delivers his Budget (PA)

Union leaders said George Osborne had done little to ease the squeeze on hard-pressed families, while businesses welcomed tax breaks and a simplification of the tax system.

‘There is no message of hope in this budget for the millions of Britons and their families facing massive cuts in their living standards,’ said GMB general secretary Paul Kenny .

Unite general secretary Len McCluskey dismissed the budget as merely ‘rearranging the furniture’.

He said: ‘Growth is shrinking, unemployment is on the rise, wages are falling or stagnant and this government is creating a lost generation of young people.

‘No one should be fooled by this budget, it’s a mirage from the architect of the most devastating cuts to jobs and services in generations.’ TUC general secretary Brendan Barber echoed Mr McCluskey, calling it a ‘no-change’ budget.

He welcomed the measures for funding apprenticeships and relief on fuel duty but said much of the remainder was gimmicky.

Working Families chief executive Sarah Jackson said more should have been done to reduce the cost of childcare. ‘Increasing personal tax allowances are good for those in work but the childcare cuts due next month will lead low income parents – particularly mothers – to give up work,’ she said.

However, Miles Templeman of the Institute of Directors welcomed the measures. ‘This was a budget aimed at changing perceptions and boosting business confidence about long-term economic prospects in the UK. The chancellor didn’t have much money to play with but he played his hand well,’ he said.

See a video report on Shadow Chancellor Ed Balls’ thoughts on the budget below: